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There is a number of Latvian banks that offer mortgage, each having their own terms and conditions. In this article, the following major banks are described:
- DNB Banka (Luminor)
It should be noted, that all the analyses and case studies mentioned here are non-exhaustive and are not meant to represent all the possible situations. Each mortgage application is reviewed separately, which is why your experience may be different. The following comparison is also available as a mortgage conditions data table.
Swedbank is a Stockholm-based bank that operates in Nordic and Baltic countries. It was established in 1820, and in 1992 expanded to Latvia. It services almost 1 000 000 private and 71 000 corporate Latvian customers.
Swedbank offers the following types of mortgage:
- for buying property
- for building property
- for renovating property
In general, the maximum available mortgage sum offered by Swedbank is 200 000 EUR. The loan can be paid out within 1 to 30 years, and the amount of the first deposit can range from 15% to 95%. Swedbank does not name any standard fixed interest rate, indicating, that each case is reviewed separately.
The fee for issuing the loan ranges from 1% to 1.5% (minimum 71 EUR), but can be reduced to 0.5%, if the collateral is a deposit. The fee for market value assessment ranges from 75 to 190 EUR, and, if it was not performed by Swedbank-approved valuation agency, there is an additional fee of 30 EUR for its acceptance. The fee for the evaluation and approval of construction work estimates is either 55 EUR (reconstruction or new building) or 35 EUR (repair works).
Citadele is a Latvian bank, whose chief target region is Baltic states. It was established in 2010, after the split of Parex Bank. Citadele is an exclusive partner of American Express in Latvia and Lithuania, which has the authority to issue American Express cards.
Citadele offers mortgage from 10 000 EUR to 300 000 EUR. The loan can be paid out within 1 to 30 years, and the amount of the first deposit can range from 0% to 95%. The interest rate starts at 2%, but the approximate rate for informational calculations is presumed to be 2.8%, which indicates a more realistic average percentage. The maximum possible interest rate is 20%.
The fee for issuing the loan is 2% of the total sum issued (minimum 150 EUR). The fee for issuing additional sums is 1.5% of the initial loan (minimum 150 EUR). The fee for postponing the date of complete payoff is 1% of the loan (minimum 75 EUR). Any other changes to the agreement that are not indicated in it cost 50 EUR each.
DNB Banka (Luminor)
DNB is a Norway-based financial services group, partially owned by the Norwegian Ministry of Trade and Industry. It was founded in 1822, and since 2017 its Latvian branch has allied with Nordea bank to operate as a new company named Luminor. The services provided by DNB, however, are still presented as bank-specific, hence it is analyzed as a separate entity.
DNB offers mortgage from 7 000 EUR to 250 000 EUR. The loan can be paid out within 1 to 35 years, and no limits to the first deposit are declared by the bank. The indicated possible interest rate ranges from 1.8% to 10%, although this, of course, is highly dependent on each individual case.
The fee for issuing the loan or increasing it is 1% of the total sum issued (minimum 200 EUR). Changes in the payment date or an application for mortgage holidays will cost 35 EUR, unless it is an application for mortgage holidays via the internet banking service, which is free. The fee for any other changes is 0.5% of the remaining unpaid loan (minimum 200 EUR). The fee for drafting and/or approving any non-standard document is 90 EUR.
SEB is a Scandinavian financial services group, based in Stockholm. It was founded in 1972, and its Latvian branch was established in 1993 as Unibanka, which in 2005 became fully owned by SEB. It serves 400 000 companies and 5 000 000 private clients in more than 20 countries around the world.
SEB offers mortgage from 3 500 EUR to 2 000 000 EUR. The loan can be paid out within 6 months to 30 years. No rules concerning the first deposit is declared by the bank. The indicated possible interest rate ranges from 0.1% to 8%, although the approximate base rate (estimated by the bank) starts from 2.7%, which is a lot more realistic approximation. The bank also offers mortgage insurance, including insurances against inability to work due to death or injury, and against losing a job.
The fee for issuing the loan can be up to 1.5% of the total sum issued (minimum 75 EUR). The majority of other changes have a fee of 0.5% of the remaining unpaid loan sum. The fee for changing the account tied to the payments is 15 EUR.